Documenti di Didattica
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MANAGERIAL ECONOMICS
College of Education
School of Continuing and Distance Education
2014/2015 – 2016/2017
General Overview of Managerial
Economics
• This course is designed to provide a solid foundation
of economic understanding for use in managerial
decision making. The course will build on students’
existing knowledge of microeconomic theory in
economics towards becoming more competent
decision makers and managers. The course will also
engender students’ knowledge of various
frameworks for analyzing business decisions through
the application of economic theory to business
problems, thereby developing general principles that
can be applied to business decision-making.
Manager
• Understand markets
• Recognise Time Value of Money
• Use Marginal Analysis
•
Goals have to be well-defined
Identifying
which you yourmove.
will goalsIfisyour
reallygoal
important
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make an Awill
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this the direction
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will be different from if your goal is to make a C.
Same applies to the firm. Goal identification gives a clear sense of direction
•
Is profit maximization good for society?
• Some assume that firms seeking profit end up ripping
society off. However, profits can send a signal to people
as to where society’s resources are best needed.
• This helps society know where resources should move
Agyapomaa Gyeke-Dako(PhD) 4/27/2018 Slide 13
Understand Power of Incentives
• Organisations are usually not managed by their owners
but are managed by managers
•
Economic decisions are made at the margins
• we compare marginal benefit of the decision and
the marginal cost to make economic decisions